Does Your Employer Match Count Toward Your Contribution Limit?
It depends on which contribution limit we’re talking about.
This is a common point of confusion I see when reviewing clients’ retirement plans, especially for high earners or anyone trying to max out their benefits.
401(k) Employee Contribution Limits (Pre-Tax + Roth)
Does your employer match count toward this limit? No
For 2025, the employee contribution limit is:
$23,500 if you're under 50
$31,000 if you’re 50+ (exception - $34,740 for ages 60-63)
This limit covers your salary deferrals, both pre-tax and Roth. Employer matching and employer profit-sharing do not reduce your ability to contribute up to these amounts.
Example:
If you contribute $23,500 and your employer matches $10,000, you’re still within the rules.
Total Limit for 401(k) Defined Contribution Plan Funding
Does your employer match count toward this limit? Yes
Beyond the employee limit, the IRS also sets a total annual additions limit for defined contribution plans (401(k), 403(b), TSP, etc.).
For 2025, that limit is:
$70,000 total (if under 50)
$77,500 total (if 50+, including catch-up)
This total includes:
Your pre-tax contributions
Your Roth contributions
Employer match
Employer profit-sharing
After-tax (non-Roth) contributions, if allowed
This is the limit that matters if you’re considering mega-backdoor Roth contributions or receive a large employer match or profit-sharing contribution.
HSA Contribution Limits
Does your employer match/contribution count toward this limit? Yes
Just like with 401(k) total contributions, HSA limits are combined. Employer contributions reduce how much you can contribute.
For 2025, HSA limits are:
$4,300 for self-only
$8,550 for family
Plus $1,000 catch-up if age 55+
Why This Matters
Understanding which limit applies to which bucket helps you:
Avoid accidental overcontributions
Maximize tax-advantaged savings
Strategically use backdoor or mega-backdoor Roth strategies
Most people only track their employee limit, but if you're a high earner, receive a generous match, or make after-tax contributions, the total plan limit becomes just as important.
Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout Virginia Beach, San Diego county, and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in Virginia Beach, San Diego, and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.